Maxwell Company estimates bad debt expense using a percentage of credit sales (3%). During the current year,

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Maxwell Company estimates bad debt expense using a percentage of credit sales (3%). During the current year, the company began its current year with a $9,500 balance in the allowance account, $10,000 of accounts receivable were written off, and $1,200 of previously written off accounts were collected. Credit sales for the year were $200,000. The bad debt expense for the year was